The Lower the Value of the Correlation Between X and Y

question 96

Multiple Choice

The lower the value of the correlation between X and Y, the more the predicted Y value

• A) will regress toward the mean of Y
• B) will deviate from the mean of Y
• C) will assume a mean of zero
• D) both b and c, but not a

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, distributing a portion of the company's earnings.

Net Income

The amount of money a company retains after subtracting all expenses and taxes from its gross revenue.

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders.

Fiscal Year

A 12-month period used for accounting purposes and preparing financial statements.